JPMorgan Chase 2025 Q4 Earnings Beats Expectations Despite 7% Net Income Drop

JPMorgan Chase reported Q4 2025 earnings with non-GAAP EPS of $5.23, exceeding estimates by $0.37, while revenue rose 6.9% to $46.77 billion, outperforming forecasts by $520 million. The bank revised 2026 net interest income guidance to ~$103 billion, aligning with market expectations, and maintained expense guidance of ~$105 billion.

Revenue

Consumer & Community Banking led with $19.40 billion in revenue, while Commercial & Investment Bank contributed $19.38 billion. Asset & Wealth Management saw robust growth, generating $6.52 billion, and Corporate activities added $1.48 billion. Total net revenue reached $46.77 billion, driven by strong performance in markets and wealth management.

Earnings/Net Income

GAAP net income fell 7.0% to $13.03 billion, with EPS declining 3.7% to $4.64. Despite the decline, the company has sustained profitability for over 20 years, demonstrating operational resilience.

Price Action

JPM shares rose 0.81% in the latest trading day but dropped 2.86% weekly. Month-to-date gains reached 7.98%, reflecting mixed investor sentiment.

Post-Earnings Price Action Review

The strategy of buying JPM shares 30 days after the earnings report over the past three years achieved an 118.54% return, outperforming the benchmark by 46.66%. With a maximum drawdown of 0.00% and a Sharpe ratio of 1.34, the approach demonstrated strong risk management, offering a reliable capital appreciation strategy.

CEO Commentary

Chairman and CEO Jamie Dimon emphasized the U.S. economy’s resilience, noting stable labor markets and healthy consumer spending. He highlighted strong performance across all major businesses, with markets benefiting from financing demand and record payments revenue.

Guidance

The bank expects 2026 net interest income of ~$103 billion and adjusted expenses of ~$105 billion. AUM is projected to exceed $4.8 trillion, with tangible book value per share growth of ~5.6%.

Additional News

Dividend Announcement: JPMorgan declared a $1.50 quarterly dividend, reflecting a 29.72% payout ratio.

Insider Sale: Robin Leopold sold 966 shares in November, reducing ownership by 1.63%.

Credit Card Policy Risk: Regulatory proposals to cap APRs at 10% raised concerns, impacting card-related income.

JPMorgan Chase’s Q4 results highlighted a resilient performance amid macroeconomic challenges, with robust revenue growth and strategic guidance setting the stage for 2026.